Power to temporarily prohibit the enforcement of security interests

(1) Where the resolution conditions are satisfied, the resolution authority may prohibit creditors of an institution or group entity under resolution, whose claims are secured, from enforcing security interests, for the period from the public announcement of that restriction under section 137(1) until the close of the business day following that announcement. In imposing the prohibition, the resolution authority has regard to the possible effects on the orderly functioning of the financial markets. The prohibition may not be exercised in respect of an institution or group entity where use has already been made of a direction under section 66a.
(2) Exempt from a temporary prohibition on the enforcement of security interests are security interests that the institution or group entity under resolution has granted, over its assets, to systems within the meaning of section 1(16) of the Banking Act or system operators within the meaning of section 1(16a) of the Banking Act, central counterparties within the meaning of section 1(31) of the Banking Act authorised in the Union under Article 14 of Regulation (EU) No 648/2012, third-country central counterparties recognised by the European Securities and Markets Authority under Article 25 of that Regulation, and central banks.